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August 31, 2012
Here's what you'll find in this edition:
CLASSIFIEDS!
NEWS AROUND THE STATE
TRAINING CLASS SCHEDULE
MEET THE FOLKS AT LIBERTY GAS
MEMBER BENEFIT PARTNER MESSAGE
A SPECIAL MESSAGE FROM BELLOMO FUELS
POLITICAL PARTICIPATON: THE NJGCA PAC
EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
MARKET MADNESS CONTINUES Better safe than sorry. Hope for the best, but plan for the worst. Chance favors the prepared. Old expressions to be sure, but there’s a nugget of truth in each of them and they offer good advice in how to deal with today’s unpredictable marketplace. Earlier this week you received a Wildfire Alert from me warning you about the price of gasoline spiking and the possible implications it could have on your business. You can view that communication by clicking HERE. What I feared – and what many of you have experienced a time or two in recent years – was a dramatic, overnight increase in gasoline prices followed by an equally dramatic drop a day or so afterward. Some outsiders may look at this scenario and wouldn’t see a problem, even if retailers would find themselves in a very tough spot. What outsiders don’t realize is that stations that were unlucky enough to take delivery when prices were so high would ultimately be stuck with high-priced gasoline and not have any (easy) way to sell it! When prices dramatically rise and fall in a short period of time, the retailers have two very stark and difficult options: 1). Continue to sell the gas at such a high price and see their volume shrink even as patrons visit other stations, or 2). Eat the loss in order to match their competitors' prices and lose a boatload of money. When I had sent out that Wildfire Alert, everything I was reading indicated it was very likely to happen. Gasoline was trading 30 cents a gallon higher at mid-day and it looked like we’d hit a 50 cents a gallon increase overnight. As I alluded to above, many of you remember this very situation a few years back – Prices rocketed up over 50 cents a gallon, you were unlucky enough to need a load just as they spiked, and then had no one to sell it to when prices plummeted the next day. When that happened, many of you faced either a $4,000 loss on a truckload of gasoline or had to endure a gradual product sell-off because your patron traffic slowed to a trickle…..not to mention your customers will think you are a thief for charging such high prices. Of course, to complicate that even more, if you HAD chosen the first option, you’d also be subject to face a Below Cost Selling Violation for selling your product at a loss! Not an easy situation to be in, is it? I felt so strongly about it, however, that I penned an editorial piece that appeared in the Times of Trenton. You can review that by clicking HERE Thankfully my prediction didn’t pan out and we saw a smaller jump in gasoline prices. Yet if there’s one thing that it should have demonstrated, it’s that you should be paying attention to the market – whether you get a warning from me or not! In the weeks ahead, this will become even more evident. I do my best to warn you about all the obstacles coming your way, but I can’t run your business and you have to make some tough calls as the market-games continue. The most recent hurricane has ravaged the Gulf coast, with many refineries and oil platforms shutting down their operations to ride out the storm. Typically when storms like this occur, it creates a ripple effect in the market that lead to under-capacity and higher prices. Thankfully, this time there was an “orderly shut down” at these facilities, which not only helped avoid an environmental disaster, but also means that they can get back up and running in days rather than weeks or months. You only have to look back to the aftermath of Hurricane Katrina to see how bad it can get. In all of this, we sometimes lose sight of the fact that crude oil, refined gasoline, and diesel fuel are commodities that are openly traded on the stock exchange. In doing so, prices changes every minute to reflect investor action. That’s a good thing in many ways, but can also be harmful if their motives are un-pure. We call these investors “speculators”, but they’re ultimately a group of gamblers, betting on what the price of a commodity will be. When they see hurricanes, production shortfalls, refineries go off-line and the like, they know there’s a real good shot that a profit can be made, driving up the price. This time they bet the price up only a modest amount, but it doesn’t mean that next time the conditions won’t be right for an even larger jump. Again, you have to be paying attention to these conditions. As I write this, the market supplies are tightening, so be on the look out for what the price does next week. A Road Warrior I wrote a few weeks ago went on a bit of a tear (okay, perhaps a bit of a rant) in reaction to the President’s assertion that you didn’t build your business. It got under my skin so badly, I felt compelled to pen an Op-Ed rejecting the idea that your success wasn’t your own doing.
The topic has since been discussed ad nauseum, but it has decidedly resurfaced this week during the RNC convention in Tampa. As small business owners, your stake in this election (and ANY election) is particular important. If you haven’t done so already, you should be tuning in to hear what the candidates have to say, and in next week, watch the DNC convention to do the same. No one who sits on the sidelines during the election has a right to complain when things get tough, so educate yourself on the topics that are important to your establishment. Thanks for listening – See you next week.
Regards,
BUSINESS FOR SALE!
CLASSIFIEDS: FOR SALE & HELP WANTED! After running an ad in the Road Warrior over the last month, NJGCA was able to assist a member in selling his equipment! If you'd like to list equipment for sale, or have an open position you'd like to make other industry professionals aware of, please contact NJGCA at 973-376-0066 and let us help you get the word out!
8/30/2012:
8/29/2012:
8/28/2012:
8/28/2012:
TRAINING CLASSES!! In order to be licensed as a Motor Vehicle Emission Inspector, you must complete this course and pass a “Written Exam” given by the State of New Jersey. NJGCA offers this training in a ONE DAY State approved training program that will provide an understanding of inspection related issues including EPA Regulations, Safety, Diesel, Customer Service and the New Jersey State Specific Curriculum. This specially tailored NJGCA course fulfills all requirements.
CLASS DETAILS: PLEASE NOTE: FUTURE DATES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 973-376-0066 or DEBBIE@NJGCA.ORG TO LET HER KNOW YOU ARE INTERESTED IN TAKING A SPECIFIC CLASS. THIS WILL ALLOW US TO GAUGE YOUR NEEDS AND KEEP TRACK OF THOSE WISHING TO PARTICIPATE!!
MEMBER BENEFIT PARTNER MESSAGE
TMP Energy Solutions We have had a number of NJGCA members successfully reduce their rate per kWh signing up through our energy saving program. We know it’s difficult to collect 12 months worth of previous electric bills to get an “accurate” analysis when comparing a variable rate to a fixed rate, but we now have another option available. This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member’s usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate. Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group. Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision. If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills. There are no bills required, but we would still like to have one bill per meter on file to check account #’s, meter #’s service addresses and other pertinent information incase there is a problem. The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate. If you are interested in becoming part of this power purchase option, please contact Greg Cannon at the NJGCA. Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket. We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs. Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund. Contact GREG CANNON at 973-376-0066 or email Greg at greg@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.
POLITICAL PARTICIPATON: THE NJGCA PAC
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members. We defeated BELOW COST SELLING We made history in getting FIRST RIGHT OF REFUSAL signed into law! We have built large support for RIGHT TO REPAIR and got it passed out of the Assembly We defended your small business against the false accusations of Attorney General Anne Milgram We gained wide support to move New Jersey to an all PIF Inspection System and close the CIF lanes ...and MUCH MORE!! In each instance, we achieved these goals with the help of our friends in the Legislature! If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call. ?
THE MEMBER TOOL BOX
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